Revised Procedure For Operation Of Assignment Accounts Of Federal Government

No.F.3(4)-DS(BR-II)/2008                                                                  Islamabad, the 06th October, 2008

OFFICE MEMORANDUM

Subject:                REVISED PROCEDURE FOR OPERATION OF ASSIGNMENT ACCOUNTS OF FEDERAL GOVERNMENT.

The undersigned is directed to say that in view of various accounting and payment problems inherent in the present system of Personal Ledger Accounts (PLAs), Government has decided to convert PLAs/Special Drawing Accounts (SDAs) into Assignment Account w.e.f. 01-10-2008. The Revised Assignment Account Procedure will ensure smooth follow of funds to the beneficiaries, withdrawal of funds on need basis and proper booking of the expenditure. Ministries/ Divisions/Departments are requested to follow the following instructions for implementation of the Revised Assignment Account Procedure.

(i)                            Revised Procedure as issued by the office of the Controller General of Accounts (CGA) vide its letter No. AC-II/1-39/08-Vol-V/632, dated 24th September, 2008 would be implemented w.e.f. 01-10-2008.

(ii)                           The existing Personal Ledger Accounts (PLAs)/Special Drawing Accounts (SDAs) would be replaced with the Assignment Account to be opened by Ministries, Divisions and Departments under F.T.R.170-B with effect from 1^st October, 2008.

(iii)                          All future budgetary releases w.e.f. 2^nd quarter, 2008 onwards would be made in the Assignment Accounts of the Ministries, Divisions and Departments instead of PLAs/SDAs/Bank Accounts.

(iv)                          Unspent cash balances, out of releases from Federal Consolidated Fund, lying either in PLAs/SDAs or in Commercial Banks shall be deposited back to Government Account, as provided under the FTR 170-B(10). 30% of such balances may be deposited back in the Government Account by 31-10-2008. Additional 30% may be deposited within three months (upto January 31, 2009) and the remaining balance i.e. 40% may be deposited in the next three months (upto April 30, 2009).

(v)                           Ministries, Divisions and Departments will submit the case of conversion of existing PLAs/SDA into Assignment Accounts on Form-A (copy enclosed). A copy of the previous permission for the opening of PLA/SDA shall be enclosed with Form-A. Such cases would be forwarded to the Deputy Secretary (BR-II), Finance Division (Budget Wing) who shall be authorized to endorse the sanction letters for the opening of Assignment Accounts in replacement of the existing PLAs/SDAs.

(vi)                          However, future requests for opening of new Assignment Accounts shall be forwarded to the Finance Division (Budget Wing) after the approval of the Principal Accounting Officer (PAO) of the Ministries/Divisions/Departments with full justification for not using the normal mode of payments through the pre-audit system of AGPR/DAO.

(vii)                        The new Assignment Accounts would be opened in consultation with the Controller General of Accounts (CGA).

(Muhammad Younas)

Deputy Secretary (BR-II)

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